China’s structured deposit issuance falls flat, lower returns expected

Despite the outstanding balance of structured deposits issued by Chinese banks in April picking up to the level seen at the end of 2020, the total balance has gradually dropped to CNY6.55 trillion. This is down 10% from a modest rebound in January or nearly half the record of CNY12.14 trillion seen in April 2020, according to data from People’s Bank of China, the Chinese central bank. In the meantime, the average expected highest yield, which is a key benchmark for structured deposit perf